The internet represents a rapidly evolving set of technologies which is central to the development of a modern economy. Internet Economics: Models, Mechanisms and Management integrates knowledge about internet service design with economic modelling principles (pricing, cost and service models). Chapters highlight specific applications of the internet such as service provisioning, cloud computing, commerce, business security, network externalities, social media and more recent developments such as the Internet of Things (IoT), the industrial internet, data analytics and the use of big data to bring value to commercial ventures. Therefore, readers will have a conceptual and practical framework for understanding the economics of internet infrastructure and service delivery. This text is essential reading for students and professionals involved in business programs and courses that focus on the commercial aspects of internet services and industries that rely on internet-based technologies.
Author(s): Hans W. Gottinger
Publisher: Bentham Science Publishers
Year: 2017
Language: English
Pages: 222
Tags: Internet Economics
CONTENTS......Page 6
FOREWORD......Page 10
PREFACE......Page 12
Organization......Page 13
ACKNOWLEDGEMENTS......Page 16
1.1. INTRODUCTION......Page 18
1.2. INDUSTRY STRUCTURE......Page 21
1.4. INTERNET PRICING......Page 22
1.6. PRICING CONGESTION......Page 24
1.7. COMPETITIVE BIDDING IN LARGE COMMUNICATION MARKETS......Page 26
1.8. INTERNET AND TELECOMMUNICATIONS REGULATION......Page 27
1.9. INTERNET COMMUNICATION TECHNOLOGIES: ATM AND B-ISDN......Page 28
1.10. BURSTINESS......Page 29
1.12. SIMPLE ECONOMICS OF INTERNET RESOURCE ALLOCATION AND PRICING......Page 30
1.13. BANDWIDTH-BUFFER TRADEOFF......Page 31
1.14. PRICING THE RESOURCES......Page 32
The Price Function......Page 33
1.15. PRICE ELASTICITIES......Page 34
1.16. RESOURCE ALLOCATION ALGORITHM......Page 35
REFERENCES......Page 36
2.1. INTRODUCTION......Page 38
2.2. THE INTERNET AS A REFLECTION OF THE ECONOMY......Page 41
Multiple Agent-Network Supplier Interaction......Page 42
2.3. INTERNET RESOURCES......Page 44
ATM and B-ISDN......Page 45
Traffic in B-ISDN......Page 46
Service Discipline......Page 47
Limiting Complexity......Page 48
2.5. MODELLING APPROACHES......Page 49
Optimal Allocation and QoS......Page 50
Scheduling and Pricing Mechanisms......Page 51
Network and Server Economies......Page 52
Allocation and Pricing Models......Page 54
Specific Problems of Economic Resource Allocation......Page 55
2.6. NETWORK ECONOMY......Page 56
Utility Parameters......Page 57
Packet Loss......Page 58
2.7. EQUILIBRIUM PRICE AND CONVERGENCE......Page 59
2.8. EXAMPLE OF TWO AGENTS AND ONE SUPPLIER......Page 62
CONCLUSION......Page 64
A. The Network Economy......Page 65
B. The Server Economy......Page 67
REFERENCES......Page 70
3.1. INTRODUCTION......Page 73
Network Routing......Page 75
Transaction Processing......Page 76
The Network Economy......Page 78
Price Equilibrium......Page 80
Proposition 3.2......Page 81
Agent Routing and Admission......Page 82
Admission Control......Page 83
Multiple Agent Network Supplier Interaction......Page 84
Proposition 3.4......Page 87
Transaction Routing......Page 88
APPENDIX: PROOF OF PARETO OPTIMAL ALLOCATIONS......Page 89
REFERENCES......Page 91
Internet Economics of Distributed Systems......Page 92
4.1. INTRODUCTION......Page 93
Pricing and Performance......Page 94
4.3. MECHANISM DESIGN APPROACHES......Page 95
Server Economy: Architecture for Interaction......Page 96
Performance Requirements......Page 97
4.4. ALLOCATION AND PRICING MODELS......Page 98
4.5. THE DATA MANAGEMENT ECONOMY......Page 99
Universal Access......Page 100
Quality-of-Service Characteristics......Page 101
4.7. DISCUSSION......Page 102
APPENDIX: SERVICE ARCHITECTURES FOR THE INTERNET ECONOMY......Page 104
Specialized Features in Centralized and Decentralized Models......Page 107
REFERENCES......Page 108
5.1. INTRODUCTION......Page 110
A Simple Mechanism Design......Page 112
Packet Loss......Page 113
Loss Probability Requirement: Utility Function......Page 114
Max and Average Delay Requirements......Page 115
Proposition 5.1......Page 116
Proposition 5.2......Page 117
Tail Probability Requirements: Utility Functions......Page 118
5.3. SERVICE ECONOMY: ARCHITECTURE FOR INTERACTION......Page 121
Performance Requirements......Page 122
CONCLUSION......Page 123
REFERENCES......Page 124
Network Platforms......Page 126
6.1. INTRODUCTION......Page 127
Assumptions and Implications......Page 130
Platform Utility......Page 131
Consumer Utility......Page 132
6.3. REVIEW OF PLATFORM ECONOMICS......Page 133
1. Amazon Web Services Platform......Page 136
3. Social Network Platform......Page 137
CONCLUSION......Page 138
REFERENCES......Page 139
7.1. INTRODUCTION......Page 142
Industrial Driving Forces in the IoT Context......Page 144
7.3. SPECIFIC TECHNOLOGIES AND USAGE......Page 146
7.4. BREADTH OF APPLICATION AREAS......Page 149
Healthcare......Page 150
7.5. SECURITY OF THINGS......Page 151
7.6. ECONOMIC BENEFITS......Page 152
7.7. FUTURE DIRECTIONS......Page 154
Smart Home Network......Page 156
REFERENCES......Page 158
8.1. INTRODUCTION......Page 161
8.2. BIG DATA DIMENSIONS......Page 166
Heterogeneity......Page 168
Quality......Page 169
Security and Privacy......Page 170
8.4. BIG DATA ANALYTICS AND SECURITY CHALLENGE......Page 171
8.5. BIG DATA ANALYTICS FOR INDUSTRY 4.0......Page 174
8.6. STATISTICAL AND COMPUTATIONAL NEEDS FOR BIG DATA......Page 177
CONCLUSION......Page 181
REFERENCES......Page 182
Internet, Innovation and Macroeconomics......Page 184
9.1. INTRODUCTION......Page 185
9.2. BASICS OF NETWORK ECONOMY......Page 186
9.3. ECONOMIC TRANSFORMATION......Page 187
9.4. ASSESSING THE TRANSFORMATION......Page 190
9.5. THE PRODUCTIVITY PARADOX......Page 193
9.6. GROWTH PROCESSES......Page 198
9.7. THE GLOBAL NETWORK ECONOMY......Page 200
Intangible Assets......Page 202
CONCLUSION......Page 203
REFERENCES......Page 204
ABBREVIATIONS......Page 207
GLOSSARY......Page 210
SUBJECT INDEX......Page 220
